CPU Mining. What Is It and What Is the Benefit of This Kind of Mining?

cpu mining

With the popularity of the cryptocurrency, the interest of people in such activities as mining is growing. However, it should be noted that this is by no means a passive source of income, as it may seem at first glance. In order to succeed in the mining industry, one must have in-depth knowledge, since as in any other field of activity, there are a lot of small nuances that must be taken into account.

If you are interested in this topic, then you already have a certain amount of knowledge and probably heard about the mining of cryptocurrency using video cards and ASICs. Indeed, the articles devoted to these types of mining are plentiful on the Internet. Absolutely the opposite situation awaits for you regarding the topic of mining using processors, the most that you can hear is that it is not quite profitable. In this article we are going to fix this and expand on the topic in detail, find out whether there is any sense in mining on CPU. This article will be useful for beginners and people with an average level of knowledge, experienced miners can hardly find out something fundamentally new here. So let’s begin.

Contents:
(please, click the topic to scroll down to it)

  1. What is CPU mining?
  2. What kinds of mining CPU exist?
  3. What are the ways to mine coins on CPU?
  4. How to choose the right CPU for mining?
  5. Conclusion

1. What is CPU mining?

Generally speaking, the extraction of coins is carried out by solving a huge number of complex mathematical problems by searching all available parameters in order to find a hash with the necessary properties. This process requires a large amount of processing power, that’s why these days mining is carried out on fairly powerful equipment. When the era of cryptocurrency was just beginning, when the number of participants in the network (miners) was small, and the complexity of the system was weak, you could mine on a normal home computer. In our time, the situation has radically changed, and many miners do not even consider CPU as a tool for mining coins. This is quite reasonable when it comes to mining as the main source of income, but if we are talking about a small home enterprise that does not require any additional expenses from a person, then why not? CPU mining is the optimal solution to try mining out and understand whether it is worth doing or not. Of course, if you have a desire to earn impressive amounts, then you should consider more powerful equipment.

2. What kinds of mining CPU exist?

The central processor (CPU) is the main part of a personal computer and any other equipment in general. It is an integrated circuit that acts in the role of the main hardware node of the device. Powerful processors are installed in modern computers, laptops, smartphones, etc. They have a high frequency of operation and consist of several cores.

Such a concept as the best processor for mining simply does not exist. The fact is that the work of each individual CPU is individual. Some processors are better at mining some coins, but others suit better for other coins. Everything depends on the very algorithm of the coin, which is mined. We want to point out that trying to mine Bitcoin on a CPU is not a very good idea, since its algorithm is too complicated for a technique of this rank. However, mining, for example, Zcash, Monero, Litecoin, Dash, etc. using a CPU is quite possible.

The most popular processors are:

  • Intel;
  • Xeon;
  • AMD.

3. What are the ways to mine coins on CPU?

We have already sorted out what is mining, how it is set up and what tools you can use to do it. Now, let’s briefly discuss the existing methods.

  • Personal or solo-mining. In this case, only the computing power of your own equipment is used.
  • Mining pools. Working with a pool means uniting a certain amount of equipment within a single server in order to search for the necessary blocks together. In this case, the system evenly distributes the reward among all members of the pool.
  • Multicurrency pool. This is a server which makes it possible to mine several cryptocurrencies at once. Switching occurs for the most profitable coin automatically.

4. How to choose the right CPU for mining?

The only correct answer to this question does not exist. For example, mining on the i5 processor will be more profitable today for obtaining Monero, and tomorrow it will be more cost-effective to mine Zcash using it. In general, the choice of CPU for mining depends on the huge number of nuances. The only universal indicator is power. The higher it is, the greater the hash rate and, thus, the profit from mining are. Before buying a processor, you need to consider two main indicators:

  • number of cores;
  • clock frequency.

Nowadays the most promising processor for this purpose is CPU Zeon. However, intel core i3/i5/i7 processors for mining are also quite good.

5. Conclusion

CPU mining was very popular at the dawn of cryptocurrency development. In 2009-2011, it was possible to mine Bitcoin using the computing power of a personal computer without any problems. Now the situation is completely opposite. Nowadays using CPU for Bitcoin mining will not only be irrelevant, but also simply unprofitable, as the cost of electricity will exceed the profit from this enterprise. However, some coins (Monero, Litecoin, Dash, ZCash, etc) can still be mined with a profit using CPUs. Anyway, you should not refer to this as the main source of earnings, because the installation of a powerful CPU will not be enough to reach a decent level. In this case it is necessary to buy specialized equipment (video cards or ASICs).

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Cryptocurrency Prices Today, September 22: Cryptocurrencies Are Unstable, Ripple Is Still Growing

crypto prices

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the online platform Coin360, Bitcоin (BTC) lost 0.74% in the past 24 hours. The price at the time of writing is $6652 per coin.

Cryptocurrencies stay both in the red and green zones:

Bitcoin Cash lost 1.70% over the past day and costs $473 per coin;

Ripple added 20.57% and is worth $0.56;

EOS grew by 1.87%, and its price is $5.89;

Litecoin increased by 0.71%, and its cost is $58;

Cardano lost 3.40%, and its value is $0.081;

Stellar dropped by 4.54% and is worth $0.23;

IOTA added 0.36%, and its value is $0.58;

Dash lost 3.3.1% and costs $200;

Monero decreased by 0.33% and is worth $119.

Ethereum added 3.97% over the past 24 hours. The cost of the coin is $235.

The total market capitalization is $221 billion. Bitcoin accounts for 52% of the total volume. It is $115 billion in monetary terms.

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HitBTC Added the Gemini Dollar Owned by Winklevoss Brothers to the Listing

gemini dollar listed on hitbtc

The cryptocurrency exchange HitBTC announced on its Twitter the addition of the Gemini dollar, launched by Cameron and Tyler Winklevoss on the Ethereum blockchain, into their own list of trading positions.

Since September 20, customers of the HitBTC, which joined it this year, can trade with Bitcoin, EOS, Tether and Ethereum in pairs with the Gemini dollar. The HitBTC platform was the first exchange on the cryptocurrency market, which carries out operations with this stablecoin.

We remind you:

OKCoin Adds Five New Tokens to Its Listing

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Cryptocurrency Prices Today, September 21: Bitcoin and Ethereum Are in the Green Zone, Ripple Rose by More Than 40%

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the online platform Coin360, over the past 24 hours Bitcоin (BTC) added 4.51%. The price at the time of writing is $6699 per coin.

Cryptocurrencies are showing positive dynamics:

Bitcoin Cash added 12.86% over the past day and costs $480 per coin;

Ripple added 41.76% and is worth $0.46;

EOS grew by 10.57%, and its price is $5.78;

Litecoin increased by 7.14%, and its value is $57;

Cardano added 16.18%, and its cost is $0.083;

Stellar gained 18.71% and is worth $0.24;

IOTA grew by 9.16%, and its value is $0.57;

Dash added 7.83%, and its price is $205;

Monero increased by 7.28% and is worth $119.

Ethereum added 8.43% over the past 24 hours. The cost of the coin is $226.

The total market capitalization is $217 billion. Bitcoin accounts for 53.2% of the total volume. In monetary terms, this is $115 billion.

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Mining Complexity: What It Is and Where It Will Get

mining complexity

Not long ago there was a real gold rush around cryptocurrency mining – thousands of people started digging digital rock to get the precious digital gold, while its rate was beating all records and surpassing all expectations. It all started from simple mining on users devices – laptops, personal computers, tablets, etc. – and turned into a complicated industry with a developed infrastructure. Mining pools appeared, specialized equipment (ASIC-miners) was produced, huge mining farms were set up, where mining was conducted on an industrial scale. Mining even partially switched to the cloud – services appeared that offered cloud cryptocurrency mining without any investments, except for financial ones. Although mining has not changed the structure of the world economy, it is nevertheless not an ordinary phenomenon. The fact that currently cryptocurrency mining consumes more electricity than many countries is a case in point.

Today we will talk about what mining complexity, its function, how it changes, what it depends on and how can it set the tone for the entire cryptocurrency mining industry.

Contents:
(please, click the topic to scroll down to it)

  1. Brief review of mining
  2. Complexity: how it changes and what it depends on
  3. What will happen to mining in the future
  4. Conclusion

 1. Brief review of mining

Mining actually means making computational operations to decode a certain algorithm and find its hash. Every mineable cryptocurrency is based on a particular hashing algorithm. When the algorithm is successfully decoded, a new block is added into blockchain, a new coin is issued and miners get their rewards. Many popular digital currencies can be issued only through mining, these are Bitcoin and its forks, Ethereum, Monero, Litecoin, Dash, Zcash, etc. Some, however, are pre-mined and do not provide mining opportunities, like Ripple, NEO, NEM, EOS, Tether, etc.

Depending on hash features, different equipment can be used to mine different digital currencies. Initially all mineable coins, including BTC, were mined on users devices (PCs or laptops) using CPU. Today it is not that common and there are a few popular coins that still provide such type of mining. Soon CPUs became not enough to profitably mine digital coins and miners started using graphic cards to cope with more resource-intensive calculations and growing complexity.

Later the specialized equipment appeared on the market – ASIC-miners that are used today to mine Bitcoin, as well as other coins, such as Litecoin, Ethereum, Dogecoin, Zcash, Bitcoin Cash, Litecoin, etc. ASIC is a specialized microchip that performs calculations much faster than graphic cards. Although ASIC today is mostly associated with mining, the technology itself was developed in early 1980s to advance graphic performance of PCs. Besides, miners create pools where they combine their processing power to make mining more efficient for the whole group. The reward for the created block is then distributed depending on the processing power provided by each pool member.

There is also another mining solution – cloud mining. Graphic cards and ASIC-miners are rather expensive, more and more of them are required to mine profitably. The equipment needs space to be placed, has to be connected to the power grid, cooled, cleaned, repaired, set up, monitored, etc. Cloud mining implies leasing of computing power from companies that manage large mining farms and data centers. In addition, cryptocurrency is mined in other sometimes even illegal ways. For example, your computer can be infected with a hidden virus-miner that uses its resources to mine a particular coin.

2. Complexity: how it changes and what it depends on

Complexity indicates how difficult it is to find hash. The specified hash parameters determine how difficult calculations should be to find it. The more users are there in the network and the more cryptocurrency is mined – the higher complexity is. Bitcoin complexity is reviewed every 2016 blocks (about 2 weeks) and depends on how much time was spent to mine previous 2016 blocks.

What is the function of complexity? Bitcoin is designed to add every new block in  10 minutes on average. This can differ from one cryptocurrency to another (2.5 minutes for Litecoin and up to 20 seconds for Ethereum). The amount of processing power in the network can drastically change over time – when Satoshi Nakamoto mined the first BTC, there was only one device in the network, probably a laptop or a PC. Today we have huge industrial farms with thousands of special mining devices.

To ensure the stability of the generation of new blocks, cryptocurrency software automatically makes it more or less difficult for miners to find hash. So if there are more miners and the computing power of the network increases, it is more difficult to find hash. If the power decreases – it becomes easier to make all necessary calculations. This is the way the system remains sustainable – no matter how much processing power is their in the network it will still take around 10 minutes to generate new Bitcoin block. In early 2010, Bitcoin complexity was just a little bit above 1, while in 2013 it was already 3 million. Today it has already exceeded 7 trillion.


Source: BitcoinEnergyConsumption.com

So, every 2016 blocks (about every two weeks), Bitcoin corrects its complexity, so that each block is generated in approximately 10 minutes, regardless of the number of miners in the system. Other mineable cryptocurrencies has the same role for complexity and it is implemented in a similar way.

3. What will happen to the mining in the future

Mining is no longer the same as it used to be – says… everyone. While some digital currencies can still be mined using PCs, it is rather difficult to join the “extraction” of most of the leading coins. To start mining Bitcoin today you should have… started mining Bitcoin a few years ago. The same thing is happening to other digital currencies, and ASIC-miners are to blame in fact. They are able to make calculations way faster and more efficient and wherever they enter the mining market, the total complexity increases and CPU/GPU-mining retires. However, some still manage to make money out of mining. There are still those coins that are not mined using ASIC-miners, which means one can still mine them on average laptops or PCs.

Anyway, one thing is clear – today, mining is no longer stands for easy money, and the market is being taken over by large, “professional” miners, who mine digital coins on an industrial scale. Industrial mining is associated with a whole range of logistics, legal and resource issues. Until recently, most of Bitcoin miners were located in China, but last year the government banned ICOs, cryptocurrency trade and mining. Another thing is energy consumption. Calculations require a lot of electricity, so the miners are looking for countries with lower power prices.

 

Source: BitcoinEnergyConsumption.com

Another problem is obsolescence of equipment. Many industrial miners have found out, that the hardware they used to mine BTC 2017 cannot ensure the same profit in 2018.

So, mining becomes less profitable and new members have no chance to join the market easily. This lead to the fact that mining of top coins becomes way less popular. Not mineable coins, as well as those who still provide available mining can take advantage of that. For example, in 2017 there was a boom for mining browser extensions (like Coinhive). Of course, browser-mining of Bitcoin or Ethereum sounds rather weird, but there is another relatively popular coin – Monero – that still provides such an opportunity.

4. Conclusion

So, complexity is one of the key categories that form a technical structure of mineable cryptocurrencies. Written in the protocol, it helps blockchain to remain sustainable in terms of the time necessary for the generation of new blocks. Complexity directly depends on the number of miners in the network and, accordingly, on the total processing power. Most of the leading cryptocurrencies have already became much more difficult to mine and this is obviously an ongoing process. There are more users, more special equipment and more professional industrial-scale miners which make mining unavailable for average users.  

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OKCoin Adds Five New Tokens to Its Listing

okcoin adds five new coins

To continue our today’s topic related to crypto exchanges, we wanted to inform you about the changes in the listing of the exchange OKCoin. OKCoin is currently occupying the second position of the CoinMarketCap rating. A couple of days ago, the management of the exchange introduced 5 new digital assets:

The newly added cryptocurrencies include:

– Ripple

ZCash

Cardano

– Stellar lumens

– 0x

The CEO of OKCoin seems pretty excited due to this event.

We are very pleased to welcome these five new cryptocurrencies and all of the communities that trade them,” he said.

We remind you:

Bittrex Adds Two New Coins: XRP and ETC

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Binance Is Spreading All Over the World

Binance is already the largest cryptocurrency exchange with the biggest trading volumes, as stated on the CoinMarketCap, but its CEO, Zhao Changpeng, is definitely not going to stop on this.

Speaking at the event in Singapore, after Binance launched a fiat branch there, Zhao spoke about creating his exchange, developing it and plans for futher expansion.

One of the biggest ambitions of Binance is opening subsidiary offices on all of the continents. The perfect outcome would be 2 exchanges on each continent. Given the fact that cryptocurrency is still far from replacing fiat assets, Zhao Changpeng finds it very important to keep fiat/crypto trading pairs.

Fiat is still where all the money is in. … And we’ve got to open that gate,” he said.

We remind you:

Review of Binance Coin Сryptoсurrency: Benefits for Holders and Prospects for Development

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